The government of Bangladesh has granted initial approval to Summit Oil and Shipping Company Limited to establish the country’s third floating LNG terminal at Moheshkhali in Cox’s Bazar. The proposed terminal will have a regasification capacity of 600 million cubic feet (mmcf) per day.
The decision was made during a meeting of the Cabinet Committee on Economic Affairs, chaired by Finance Minister. The government plans to sign a Build-Own-Operate-Transfer (BOOT) contract with Summit Group July 2023. The project is expected to be operational by 2026 and will require an estimated investment of $500 million. The new terminal aims to meet Bangladesh’s increasing gas demand, which is projected to reach 4,000 mmcf per day by 2026, with a significant contribution from LNG imports.